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Product Planning and Development

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Product Planning and Development!

Since the introduction the New Industrial Policy (NIP) in 1991, India has witnessed during this decade the emergence of a host of new products. These new product introductions were in FMCG, consumer durables, services and in Industrial markets.

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Counting on a fast growth of sales in these product categories, the long term solution lies in strengthening brand equity evolving better distribution will back-up advertised promise of the product and making it available closer to the customer.

With the opening up of the Indian economy marketers to-day are facing a barrage of new challenges and opportunities. The Indian market is emerging as a dynamic and competitive arena where “the only thing that is permanent is change”.

Given the intense competition in most products today, companies that fail to develop new products are exposing themselves to great risk. Their existing products are vulnerable to changing consumer needs and tastes, new technologies, shortened product life cycles and increased domestic and foreign competition.

A company can add new products through the acquisition of other companies or by devoting one’s own efforts on new product development. With the help of new products a company can enter a growing market for the first time and supplement its existing product lines.

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New products could also mean offering improved performance like black and white TVs to colour sets or greater perceived value and replacing existing products or re-launching old products which are targeted at new market segments.

Dove by Hindustan Lever is an example of creating an entirely new premium segment. It has been positioned for the super premium segment as a skin care product and not as a soap. Dabur had identified an existing consumer need and developed Dabur Vatika Hair Oil. By adding henna, lime, and other ingredients to coconut oil, Dabur created Vatika for the Indian ladies.

The advancement of technologies, intense competition and the sheer size of the Indian market and the continuing economic development has opened new vistas for launching new products. To be successful, a new product must have desirable attributes, be unique, and have its features communicated to consumers. New products can lead to larger profits and give a company better control over a marketing strategy.

To limit risk, many companies seek to reduce dependence on one product or product line. Firms may improve the efficiency of their established distribution systems by placing new products in them. They can spread advertising, sales and distribution costs among several products, gain dealer support and discharge others from entering the market.

Good long-run new product planning requires systematic research and development, matching the requirements of new product opportunities with company abilities, emphasizing consumer desires, properly spending time and money.

A new product planning and development and the main objectives of new product launch consist of the following:

i. Market innovations encouraging companies to make improvements in existing products and launching these as new products.

ii. Product improvements:

Companies make improvements in quality or aesthetic values of products and re-launch them.

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iii. Technological Innovations:

Two-stroke motor cycles are replaced with fuel efficient four- stroke motor cycles through technological innovations. Building competitive advantage and enhancing customer satisfaction become the important objectives of a manufacturer.